Bernard Madoff trustee Irving Picard claimed Citigroup ignored "internal wonder" at odd Madoff practices as well as red flags of possible fraud in dealings with Madoff feeder funds.

In a suit filed in federal bankruptcy court in Manhattan in December and unsealed this week, Picard demanded that Citigoup pay somewhere around $430m (€315m). "Armed with public and considerable non-public information about Madoff, Citigroup knew or should have known of possible fraud at Madoff's investment advisory business," the trustee alleged.